Maldives President Muizzu Seeks India’s Support Amid Economic Crisis Despite Diplomatic Strains

The Maldivian President Mohammed Muizzu is set to visit India to negotiate a financial bailout amid the country’s economic crisis, despite previously adopting an anti-India stance during his election campaign. With foreign reserves critically low and additional debts forthcoming, Muizzu is hopeful for India’s support, marking a significant shift in diplomatic relations.

The Maldivian President, Mohammed Muizzu, is poised to undertake a significant five-day visit to India, during which he aims to negotiate a substantial bailout amidst a pressing economic crisis in the Maldives. With the nation grappling with a precarious financial situation marked by dwindling foreign exchange reserves of $440 million, Muizzu expressed a strong belief in India’s willingness to assist, stating, “India is fully cognizant of our fiscal situation, and as one of our biggest development partners, will always be ready to ease our burden, find better alternatives and solutions to the challenges we face.” This marks a notable shift in Muizzu’s approach, especially considering his previous rhetoric advocating for an “India out” policy during his electoral campaign, which called for the withdrawal of Indian military presence from the Maldives. Despite the earlier tensions, Muizzu indicated a commitment to dialogue, asserting, “We are confident that any differences can be addressed through open dialogue and mutual understanding.” Despite reassurances from Muizzu that the Maldives is not on the brink of sovereign debt default, financial ratings firm Moody’s has expressed concern regarding the nation’s rising debt risks and the sustainability of its foreign currency reserves against looming external debt obligations. As the Maldives faced increasing economic pressures, the urgency of Muizzu’s visit to India has become evident, particularly as India had previously extended a financial package worth $1.4 billion for various developmental initiatives. Relations between the Maldives and India have fluctuated significantly since Muizzu’s election in November. Initial diplomatic moves, including high-profile visits to Turkey and China, raised eyebrows regarding his government’s inclination away from India. Moreover, contentious remarks from Maldivian officials about India’s Prime Minister, Narendra Modi, and demands for the withdrawal of Indian troops had fueled tensions. Subsequently, a compromise was reached that transitioned Indian military personnel from the Maldives to civilian technical staff for operating necessary aircraft. Furthermore, Muizzu’s administration decided against renewing a hydrographic survey agreement with India, hinting at a deliberate shift in foreign policy aimed at reducing Indian influence while cultivating closer ties with China. Notably, a Chinese research vessel was permitted to dock in Maldivian waters, which was perceived as a strategic maneuver at India’s expense. In response, Muizzu clarified his foreign policy approach, emphasizing the principles of mutual respect and non-interference, which he terms as the “Maldives First” policy. However, despite the pivot towards China, substantial financial support from Beijing has been lacking, underscoring the Maldives’ reliance on Indian assistance, as articulated by analyst Azim Zahir: Muizzu’s upcoming visit to India reflects the reality of the nation’s dependency, a gap that would be difficult to fill by any other country.

The Maldives is currently facing a significant economic crisis characterized by declining foreign currency reserves and a heightened risk of debt default. President Mohammed Muizzu’s administration, which took office in late 2023, has adopted a reconciliatory stance towards India despite previously advocating for a reduction in Indian influence. The nation faces mounting external debt obligations, prompting urgent calls for financial assistance, making Muizzu’s upcoming visit to India critical in securing much-needed support. This situation highlights the complex interplay of domestic and foreign policy in the context of the Maldives’ relationships with major powers like India and China.

In summary, President Mohammed Muizzu’s impending visit to India is a critical step in addressing the Maldives’ pressing economic challenges. As the country grapples with declining foreign reserves and looming debt risks, Muizzu’s shift from an India-out approach to seeking financial assistance reflects the harsh realities facing the nation. The forthcoming discussions with India are not only pivotal for immediate economic support but also underscore a potential geopolitical recalibration in the Maldives’ foreign relations.

Original Source: www.bbc.com